Joint Venture

OLD MUTUAL PLC
24 September 1999

OLD MUTUAL PLC &
SUMITOMO LIFE INSURANCE COMPANY

Establishment of a strategic relationship between Old Mutual plc ('Old
Mutual') and Sumitomo Life Insurance Company ('Sumitomo Life')

Old Mutual is the leading financial services group in southern Africa.
Following demutualisation, its shares were listed on the London,
Johannesburg and three other stock exchanges on 12 July 1999.  Its
businesses comprise life assurance, asset management, banking and general
insurance.

Sumitomo Life is the third largest Japanese life insurance company with
interests in life assurance, asset management, unit trusts and pensions.

Old Mutual and Sumitomo Life have agreed to enter into a relationship to
support each other in the areas of unit trusts and institutional asset
management, initially in Japan, the UK, offshore UK and in South Africa.
The two companies have also agreed that Old Mutual will become the largest
non-Japanese stakeholder with approximately a 15% stake in Sumisei Global
Investment Trust Management Co. Ltd. ('Sumisei Global'), the unit trust
business of Sumitomo Life.

The asset management skills of both companies in global and Japanese
investments will be the basis of this new joint venture. In recognition of
each others' capabilities, the two companies plan to arrange a swap
facility and intend to co-operate in the area of institutional asset
management in their respective markets.

Within the area of unit trusts, and subject to any regulatory clearances,
non-Japanese equities retail funds managed by Old Mutual will be marketed
under the 'Sumisei Global' brand in Japan.  Also the Japanese equity
retail funds managed by Sumisei Global will be marketed under the 'Old
Mutual' brand in the UK, offshore UK and South Africa.  Old Mutual and
Sumisei Global may develop and create new jointly-managed unit trusts to
market to retail investors in Japan. The two companies aim to launch the
first such fund in the first quarter of 2000.

ENQUIRIES:

Old Mutual plc
James Poole,                                      Tel: + 44 171 569 0100
Director of Corporate Communications 
Heather Formby, Investor Relations                Tel: + 44 171 569 0144

College Hill
Gareth David                                      Tel: + 44 171 457 2020

Sumitomo Life
Shigeyuki Hiramitsu, Public Relations Section     Tel: + 81 3 5550 4330

Mike Levett, Chairman & Chief Executive of Old Mutual, comments:

'I am delighted that we have been able to expand our international
presence through this link-up with one of Japan's most prestigious
investment institutions. This venture comes at an exciting time in the
development of Japan's financial market and I look forward to Old Mutual
building a worthwhile business in this important territory.'

Masajiro Yahara, Senior Managing Director of Sumitomo Life, comments:

'I am very pleased that we have agreed on the alliance with Old Mutual,
which has a long investment history as well as abundant entrepreneurship.
Sumitomo Life has been keen on capital participation and collaboration
with overseas asset management companies of distinction, aiming to
strengthen our global investment skills and explore opportunities in the
pension and unit trust businesses.  I hope that this relationship will
contribute to extend our network further in Europe.'


BACKGROUND INFORMATION

Japanese Investment Market

1.The deregulation of the Japanese financial market, named the Japanese
  'Big Bang', has been in progress since 1996.  The Japanese Big Bang aims
  to create a more open and transparent financial system by removing a
  number of regulations, which segregated the insurance, banking and
  securities industries.

2.There have also been legislative changes in Japan in the investment
  sector.  For example, unit trusts have been more widely sold since
  December 1998 not only by securities houses but also by insurance
  companies and banks.  The value of the unit trusts, sold by financial
  institutions excluding securities houses, stood at some Yen 1.8trn (£11bn)  
  by the end of August 1999.

3.Japan is likely to introduce a new corporate pension scheme, similar
  to the US 401K plan, next year.  Such plans operate as a top-up of
  existing state pensions and, unlike current arrangements, individuals
  decide for themselves how and where to invest their contributions.

4.The majority of Japanese financial assets, estimated at Yen 1,200trn
  (£6trn), are currently held in bank/postal savings deposits.  However,
  preferential protection for bank deposits is expected to be significantly
  reduced from April 2001. A total of Yen 106trn (£612bn), held as 10-year
  postal savings, matures over the next two years. Given the low returns
  from deposits, retail funds are expected to shift increasingly to higher-
  yielding risk-based products, namely mutual funds and other equity-based
  products.

5.Some 40% of unit trusts are currently held in MMF (money market
  funds).  In the latest 3 months, the growth of the equity funds (+5%) has
  overtaken that of the fixed income funds (+4%).


NOTE FOR EDITORS

Sumitomo Life Insurance Company

1.Sumitomo Life, established in 1926, is the 3rd largest life insurance
  company in Japan with total assets of Yen 24trn (£137bn).  The company has
  13mn individual life policyholders (excluding private pension), serviced
  by approximately 50,000 salespersons.

2.Given the already high Japanese penetration of life insurance
  products in Japanese households, Sumitomo Life has positioned its asset
  management business, including pension and mutual trusts fund management,
  as being strategically significant for future growth in the market.

3.Sumitomo Life Investment Co., Ltd, Sumitomo Life's wholly-owned
  subsidiary, is engaged in the institutional asset management and currently
  has Yen 10trn (£57bn) under management.

4.Sumisei Global was established in 1989 and became Sumitomo Life group's
  unit trust business company in March 1999.  Since its acquisition,
  Sumisei Global has launched three funds.  'Sumisei Duet Open', launched
  in May 1999, investing in Japanese equities, raised Yen 26bn (£148mn) by
  September.  Another Japanese equities fund, 'Super Active Open',
  launched in July 1999, has already raised Yen 21bn (£127mn).

NOTES FOR EDITORS

Old Mutual plc

Old Mutual is a leading international financial services group, now
headquartered in London, with strong brands in Asset Management, Life and
General Insurance, and Banking. Principal operating subsidiaries include
Old Mutual Asset Managers,  Nedcor banking group, Old Mutual Life
Assurance, and Mutual & Federal. The Group is the leading financial
services company in Africa operating in South Africa, Zimbabwe, Namibia,
Malawi, Kenya, Botswana, Lesotho, Swaziland and Mauritius; and
complemented by growing businesses in the UK, Bermuda, Guernsey, Hong
Kong, Ireland, the Isle of Man and the United States.

Following a successful demutualisation in early 1999 Old Mutual plc listed
on the London, Johannesburg, Namibia, Malawi and Zimbabwe Stock Exchanges
on 12 July 1999. At the close of business on 1 September, the company was
capitalised at approx. £4.6bn.

The Group's principal businesses comprise life insurance (including
retirement savings), asset management (including unit trusts and portfolio
management and stockbroking services), banking and general insurance. As
at 30 June 1999 the Group's total assets were £37 billion (R354 billion)
and it had approximately 3.2 million life policyholders, 2 million banking
customers, 270,000 general insurance policyholders and 790,000 unit trust
accounts with some of these customers being customers of more than one of
the businesses.

Asset Management

The Group provides a multi-country asset management capability with
specific local and global investment and asset management expertise. Old
Mutual Asset Managers is a leading fund manager in South Africa and the
United Kingdom. Group fund management operations, both institutional and
retail, are characterised by strong growth in assets under management. Old
Mutual Unit Trusts is the leading unit trust provider in South Africa with
unit trust assets under management of £1.2 billion (R11.6 billion) as at
31 December 1998, and strong global funds marketed in the UK and key
offshore financial centres.

Through Capel Cure Sharp, the Group is a leading provider of portfolio
management and stockbroking services to high net-worth individuals in the
UK. Capel Cure Sharp had assets under management of £9 billion (R88
billion) as at 31 December 1998. In addition, a fast-developing business,
Galaxy, is a leading linked investment service provider in South Africa.
The Group's own and third party assets under management now exceed £40
billion.

Life Insurance

The Group's life business is conducted principally by Old Mutual Life
Company which provides life, disability, health, retirement savings and
investment products to individuals and groups. Substantially all of Old
Mutual's life business is in South Africa. Old Mutual's life business
gross premiums for the six months ended 30 June 1999 were £1.6 billion
(R14.8 billion) and Old Mutual was the leading life insurer in South
Africa, accounting for over 30 per cent. of all premiums in the market.

Banking

The Group's banking business is conducted principally by Nedcor, in which
the Group had a 53.5 per cent controlling interest as at 31 December 1998.
Nedcor is a leading bank in South Africa and its activities include
retail, commercial, corporate and investment banking and asset management.

Nedcor is listed on the Johannesburg Stock Exchange and as at 23 September
1999 had a market capitalisation of £2.6 billion (R26.3 billion), making
it the second largest bank in South Africa on this basis. Of the major
South African banks, Nedcor had the highest return on assets and return on
equity.  Nedcor distributes its products through a wide range of
distribution channels.

Nedcor is a leader in the application of information technology in the
South African financial services industry which has enabled it to target
growing areas of e-commerce and continue its focus on lowering its
cost:income ratio.

Nedcor has operations in the UK, the Isle of Man, Hong Kong, Lesotho,
Mauritius and Swaziland and representative offices in Beijing, Singapore
and Taipei. In addition, Nedcor has strategic shareholdings in financial
institutions in Mauritius, Namibia and Zimbabwe and in HSBC Equator Bank.

General Insurance

The Group's general insurance business, in which the Group has a
controlling interest, is the largest such business in Africa.  Mutual &
Federal writes motor, fire, accident, engineering and marine business.
Mutual & Federal distributes its products primarily through brokers and
Old Mutual's full-time agents. Mutual & Federal also has operations and
interests in Namibia, Botswana and Zimbabwe.  In the six months ended 30
June 1999, Mutual & Federal's general insurance net premiums were £130
million (R1.3 billion) and the company recently announced a special
dividend to shareholders of £144 m to be paid in October 1999.